Asian markets ended lower Thursday as investors turned cautious again after reports out of Europe cited German officials as saying they are opposed to the idea of running two separate bailout funds for the euro-zone.
The Nikkei closed down 0.7%. The Shanghai Composite was off 0.1% and the Hang Seng also lost 0.7%. The Sensex fell 2.3% and in Sydney the S&P/ASX All Ordinaries gave up 0.3%.
Further weighing on sentiment was a warning from S&P which said the ratings agency could cut its credit ratings of the European Union and large euro-zone banks if EU leaders fail to agree on a solution for the region’s debt crisis at its two-day summit ending Friday.
Asian markets also faced other headwinds with unemployment unexpectedly up to 5.3% in Australia, and a fall in machinery orders in Japan.
Stocks on the Move
In Tokyo, weaker-than-expected machinery orders pressured industrial stocks with data showing a fall of 6.9% in October from the previous month. Nippon Steel was softer by 1.5% while industrial supplier Mitsui & Co fell 2.1%. Takamatsu Machinery was down 0.3% while Takisawa Machine Tool Co. lost 1.1%.
Shares in Tokyo Electric Power tumbled 11.3% after a report that the government may inject huge funds into the utility, effectively taking control of the firm.
Olympus was up 4.4% after the board revealed plans to quit over the accounting scandal saying it will likely pick a team of potential successors.
Some exporters lost ground on a strengthening yen overnight. Panasonic fell 2.9% while Sharp Corp. declined 0.4%. Nikon was down 2.4% while Canon declined 0.6%.
In auto, Honda Motor reversed 1.8% while bellwether Toyota fell 0.9%. Nissan backed up 2.1%.
Shares of Europe-headquartered banks HSBC and Standard Chartered were down 0.9% and 1.1% each, respectively, in Hong Kong. Index heavyweight ICBC declined 0.4% while China Construction Bank Corp. was off 0.2%. AgBank was off 0.3%.
New China Life, China's No. 4 life insurer by premiums, has raised $1.3 billion in Hong Kong from its initial public offering.
The company is scheduled to list in Hong Kong on December 15 and in Shanghai on December 16.
Shares in Li & Fung were down 5.2% after Singaporean wealth fund Temasek Holdings said it would sell bonds exchangeable for Li & Fung shares it holds.
China Mobile was another major drag on the index, down 0.7%.
Trading volumes were thin as investors preferred to wait for economic data due Friday in China.
Ratings agency Fitch said yesterday profitability for Chinese life insurers remains under pressure. November premiums data is expected next week.
In Mumbai, Jaiprakash was the top loser on the Sensex, down 5.4%, followed by BHEL, down 5.3%. L&T and Hindalco were down 5.1% and 5% each, respectively.
Other losers included Sterlite, DLF, RIL, SBI, Mahindra & Mahindra, Coal India, ITC, ICICI Bank and Tata Steel, all down in a range between 3.1% and 4.4%.
Coal India shares were weighed down additionally after the company’s management said they are lowering the production target for the ongoing financial year to 440 million tonnes of coal from an earlier estimate of 452 million tonnes.
In Sydney, ANZ Banking Group today cut its standard variable rate by 25 basis points, matching the Reserve Bank’s cut on Tuesday. NAB also cut its standard variable rate by 0.25%.
NAB shares were up 0.9% while ANZ lost 0.5%. CBA erased 1% while Westpac gave up 0.4%.
Investment bank Macquarie Group edged up 0.2%.
Among the major miners, BHP and Rio Tinto dropped 0.1% and 0.2% each, respectively.
Woodside Petroleum slipped 2.3% while Oil Search lost 0.3%. Santos dropped 3.9%.
In retail, Woolworth’s was marginally lower while Wesfarmers shaved off 0.3%.
